What is the Variable Cost Formula? - ANSWERSUnit Variable Cost x Quantity Produced
T/F: Quantity produced is a decision option typically based on demand. - ANSWERSTRUE
Multiple outputs may be evaluated using what? - ANSWERSOne-Way data tables
Two-Way data tables can evaluate ONLY what? - A...
What is the Variable Cost Formula? - ANSWERSUnit Variable Cost x Quantity Produced
T/F: Quantity produced is a decision option typically based on demand. - ANSWERSTRUE
Multiple outputs may be evaluated using what? - ANSWERSOne-Way data tables
Two-Way data tables can evaluate ONLY what? - ANSWERSOne output variable
T/F: Predictive models focus on understanding the future. - ANSWERSTRUE
What are Sales Levels often used for? - ANSWERSTo plan inventory levels.
What do Predictive Models incorporate? - ANSWERSThey Incorporate the uncertainty element
What are Decision Variables? - ANSWERSVariables you're trying to define
What is Objective Function? - ANSWERSThe quantity that is to be minimized or maximized.
What is the most important tool in Prescriptive Analytics? - ANSWERSOptimization
What are Constraints? - ANSWERSLimitations, requirements, or other restrictions that are imposed on
any solution, either from practical or technological considerations or by management policy.
What are Simple Bounds? - ANSWERSConstrain the value of a single variable
What are Limitations? - ANSWERSUsually involve the allocation of scarce resources
, What are Requirements? - ANSWERSInvolve the specification of minimum levels of performance
What are Proportional Relationships? - ANSWERSOften found in problems involving mixtures or blends
of materials or strategies
What are Balance Constraints? - ANSWERSEssentially state that Input = Output and ensure that the flow
of material or money is accounted for at locations or between time periods.
In the Solver options, you can check the box ____ ________ ________ and Solver will rescale the values
of the objective and constraint functions internally to minimize the effects of poor scaling. -
ANSWERSUse Automatic Scaling
What elements does an Optimization Model have? - ANSWERS1. Decision Variables
2. An objective to maximize or minimize
3. Constraints
What does it mean when a model has a unique Optimal Solution? - ANSWERSThat there is exactly ONE
solution that will result in the maximum (or minimum) objective.
What does it mean when a model has Alternative Optimal Solutions? - ANSWERSThe objective is
maximized (or minimized) by more than one combination of decision variables, all of which have the
same objective function value
When do Alternate Optimal Solutions exist? - ANSWERSWhen any of the allowable increase or allowable
decrease values for changing cells are zero.
What is an Unbounded Solution? - ANSWERSThe value of the objective can be increased or decreased
without bound.
What is Integer Tolerance? - ANSWERSThe parameter that specifies when the Solver algorithm will
terminate an optimization process with integer constraints
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